So far this earnings season, Netflix, Bank of America and others have beaten expectations, underscoring what some see as the resilience of the U.S. economy, despite the global slowdown. Bitcoin has also returned to the red.
Bitcoin was trading lower on Wednesday, with prices continuing to fall after failing to break through resistance at $19,550. After reaching a high of $19,655.75 on Tuesday, which saw BTC break through the aforementioned ceiling, prices slipped to a low of $19,144.77 earlier in the day.
Wednesday’s decline sees the token approaching a break below $19,000, with bears likely targeting a low of $18,900.
Bearish sentiment has been largely present during what many are calling “red October“. Bitcoin has been trading below $20,000 for the majority of the month so far. Looking at the chart, the 10-day moving average (red) has extended its downward crossover with the 25-day moving average (blue), which could be a sign of further declines to come.
In addition, the 14-day relative strength index (RSI) is at 45.50, en route to a low at 44.00.
Like bitcoin, ethereum has fallen for a second consecutive day, with the token dropping below the $1,300 level. Earlier in yesterday’s session, the token was trading above a ceiling of $1,330, but after failing to maintain a breakout, the bears returned to the market.
The world’s second-largest crypto-currency fell to an intraday low of $1,291.66, a day after hitting a high of $1,332.49.
As can be seen on the chart, today’s decline in the ETH as the 14-day RSI continued to fall from its own high of 46.80. Currently, the index sits at 43.47, with the next visible point of support near the 36.00 region.
If price strength continues to deteriorate, we may soon see ethereum move further into bearish territory.